MGIC Investment (NYSE:MTG) Shares Gap Down – What’s Next?

MGIC Investment Corporation (NYSE:MTG) gapped down before the market opened on Tuesday . The stock had previously closed at $27.55, but opened at $26.14. MGIC Investment shares last traded at $26.2340, with a volume of 149,547 shares trading hands.

Key Headlines Impacting MGIC Investment

Here are the key news stories impacting MGIC Investment this week:

• Positive Sentiment: Q4 EPS beat estimates — MGIC reported $0.75 EPS vs. $0.73 consensus, and reported strong net income and full‑year results that support profitability metrics. MGIC Investment (MTG) Q4 Earnings Beat Estimates
• Positive Sentiment: Scale of business remains large — management closed the year with insurance‑in‑force above $303 billion, signaling continued franchise scale that supports long‑term earnings. MGIC Investment Corporation Reports Fourth Quarter 2025 Results
• Neutral Sentiment: Analysts flag sustainability questions — commentary and previews note it’s unclear whether MGIC can sustain recent profit momentum given mix and loss trends; investors will watch reserve and loss‑ratio trends going forward. MGIC Investment Earnings on Deck: Can Insurer Sustain Profit Momentum?
• Negative Sentiment: Revenue missed expectations — Q4 revenue of about $298.7M fell short of ~ $308M estimates and declined versus year‑ago, driven by lower premiums that offset higher investment income. MGIC Q4 Earnings Beat Estimates, Revenues Miss, Insurance in Force Up Y/Y
• Negative Sentiment: Loss ratio rose year‑over‑year — underwriting metrics showed a higher YoY loss ratio, which pressures underwriting margins and is a key driver of investor concern about sustainable earnings. MGIC Investment reports in-line Q4 earnings, top-line miss as YoY loss ratio up

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Keefe, Bruyette & Woods increased their price objective on shares of MGIC Investment from $27.00 to $28.00 and gave the company a “market perform” rating in a research report on Thursday, December 18th. Barclays increased their price target on MGIC Investment from $28.00 to $30.00 and gave the company an “equal weight” rating in a report on Tuesday, January 6th. Finally, Weiss Ratings reaffirmed a “buy (a-)” rating on shares of MGIC Investment in a report on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, MGIC Investment presently has an average rating of “Hold” and an average target price of $28.00.

MGIC Investment Stock Performance

The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.48 and a current ratio of 1.48. The stock has a market cap of $5.87 billion, a P/E ratio of 8.42, a P/E/G ratio of 1.49 and a beta of 0.83. The business’s 50-day moving average price is $28.22 and its 200-day moving average price is $27.74.

MGIC Investment (NYSE:MTG) last released its earnings results on Monday, February 2nd. The insurance provider reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.73 by $0.02. MGIC Investment had a return on equity of 14.62% and a net margin of 61.96%.The company had revenue of $298.65 million for the quarter, compared to the consensus estimate of $308.19 million. During the same period in the previous year, the business earned $0.72 earnings per share. MGIC Investment’s quarterly revenue was down .9% compared to the same quarter last year. As a group, sell-side analysts expect that MGIC Investment Corporation will post 2.71 earnings per share for the current fiscal year.

MGIC Investment Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 6th. Investors of record on Tuesday, February 17th will be paid a dividend of $0.15 per share. The ex-dividend date is Tuesday, February 17th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.3%. MGIC Investment’s payout ratio is 19.29%.

Insider Buying and Selling at MGIC Investment

In other news, CEO Timothy J. Mattke sold 139,203 shares of the stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $26.51, for a total value of $3,690,271.53. Following the completion of the sale, the chief executive officer directly owned 822,588 shares of the company’s stock, valued at $21,806,807.88. This represents a 14.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.41% of the stock is currently owned by insiders.

Institutional Investors Weigh In On MGIC Investment

Institutional investors have recently bought and sold shares of the business. Alpine Bank Wealth Management bought a new position in shares of MGIC Investment in the third quarter worth about $28,000. Newbridge Financial Services Group Inc. purchased a new position in MGIC Investment in the 3rd quarter worth approximately $28,000. True Wealth Design LLC boosted its stake in MGIC Investment by 262.5% in the 2nd quarter. True Wealth Design LLC now owns 1,004 shares of the insurance provider’s stock worth $28,000 after purchasing an additional 727 shares during the period. SBI Securities Co. Ltd. boosted its position in shares of MGIC Investment by 61.1% during the third quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider’s stock worth $30,000 after acquiring an additional 395 shares during the last quarter. Finally, Hantz Financial Services Inc. increased its holdings in MGIC Investment by 3,067.6% in the 2nd quarter. Hantz Financial Services Inc. now owns 1,077 shares of the insurance provider’s stock valued at $30,000 after acquiring an additional 1,043 shares during the last quarter. Hedge funds and other institutional investors own 95.58% of the company’s stock.

About MGIC Investment

MGIC Investment Corporation (NYSE: MTG) is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation’s first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company’s primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.